Chapter 17
(also Chapter 23)
Banking and the Management of Financial
Institutions
(also Risk Management in Banking)
By Taweewan17-0
S.
Banks play an important role in channeling funds
(about $10 trillion annually, in the U.S.) to finance
productive inves

1
Practice Multiple Choice Questions for Final Exam
ECON 304: Financial Instruments and Institutions
Winter 2014
The term structure of interest rates is
A) the relationship among interest rates of different bonds with the same risk and maturity.
B) the st

1
Econ 304 Financial Instruments and Institutions
(Winter 2014)
ASSIGNMENT # 1 (Total 100 points)
Due on 14th February by 4pm
(This will be a strict deadline because I will post the solution on 14th February at 4pm and no
assignment will be accepted after

Canadas Regulatory System
In Canada, separate regulatory agencies regulate
banking, insurance, securities and credit unions with
the Bank of Canada in charge of monetary policy and
market stability.
Regulatory responsibility is also split between the
na

Chapter 4
Why do Interest Rates
Change?
By Taweewan S.
(Winter 2015)
Chapter Preview
In the early 1950s, short-term Treasury bills were
yielding about 1%. By 1981, the yields rose to 15% and
higher. But then dropped back to 1% by 2003. In 2007,
rates jump

Chapter 2
An Overview of Financial System
By Taweewan S.
(Winter 2016)
1
Financial System
Types of Financial Flows
1. Direct Finance
Borrowers borrow directly from lenders in financial
markets by selling financial instruments which are claims
on the borr

Part II: Fundamentals of Financial Markets
CHAPTER 3
What do interest rate mean and what is
their role in valuation?
PART A
By Taweewan S.
(Winter 2016)
1
OUTLINE
1.
Measuring Interest Rate
Interest rate, present value, and future value
Present value ap

Chapter 4
Why do Interest Rates Change?
By Taweewan S.
(Winter 2016)
1
Chapter Preview
In the early 1950s, short-term Treasury bills were
yielding about 1%. By 1981, the yields rose to 15% and
higher. But then dropped back to 1% by 2003. In 2007,
rates ju

Part II: Fundamentals of
Financial Markets
CHAPTER 3
What do interest rate mean and what
is their role in valuation?
PART A
By Taweewan S.
1
OUTLINE
1.
2.
3.
Measuring Interest Rate
Interest rate, present value, and future value
Present value applicatio

1
Practice Multiple Choice Questions for Final Exam
ECON 304: Financial Instruments and Institutions
Winter 2014
The term structure of interest rates is
A) the relationship among interest rates of different bonds with the same risk and maturity.
B) the st

Chapter 4
Why do Interest Rates Change?
By Taweewan S.
Chapter Preview
In the early 1950s, short-term Treasury bills
were yielding about 1%. By 1981, the yields rose
to 15% and higher. But then dropped back to 1%
by 2003. In 2007, rates jumped up to 5%, o

Chapter 2
An Overview of Financial System
By Taweewan S.
1
OUTLINE
Key Components of Financial System
Functions of Financial Markets
Structure of Financial Markets
Types of Financial Intermediaries
Regulation of the Financial System
2
KEY COMPONENTS OF FI

Chapter 12
Bond Market
By Taweewan S.
1
In this chapter, we focus on longer-term securities:
bonds. Bonds are like money market instruments, but
they have maturities that exceed one year. These
include Treasury bonds, corporate bonds, mortgages,
and the

Chapter 13
Stock Market
By Taweewan S.
1
Are you willing to invest in the stock market?
Everybody seems to love Apple.
How good an investment has Apple been?
Suppose your grandparents had given you 100 shares
of Apples stock in 1995. If you had held on

1
Econ 304 Financial Instruments and Institutions
(Winter 2014)
ASSIGNMENT # 1 (Total 100 points)
Due on 14th February by 4pm
(This will be a strict deadline because I will post the solution on 14th February at 4pm and no
assignment will be accepted after

1
Econ 304 Financial Instruments and Institutions (Winter 2016)
ASSIGNMENT # 2 (Total 100 points)
Due date: Thursday 14th April by 4 pm
Instruction
There are 7 questions and 6 pages including the cover
Only hard copy
Staple all pages of the problem set to